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The Power Politics of Trade Free trade or Liberalization while it is of immense benefit for the growth and economy of the country- is not without its flip side for the small suppliers and producers. Where and how does one strike a balance between the macro interests of the nation and the micro interests of the small timer?
How can we talk about integrating world economy when the majority is not
even integrated within their own economies? Where the Trade Talking, essentially aimed at sensitizing people over the implications of the WTO negotiations that took place in Geneva, is a series of six short films which focuses on key trade issues faced by Brazil, India, Indonesia, Kenya, Philippines and Zambia. Recognising media as the most powerful agent of spreading the message across, Oxfam International, in collaboration with Television Trust for the Environment (TVE) and Development Alternatives have jointly produced the film to reach wider audiences on the importance of the WTO negotiations. The film premiere was organised by Development Alternatives on 26 July, 2006 at the India Habitat Centre where people from different walks of life, diplomats from the countries featured in the film, academicians, research scholars, industry, had come together on the issue of WTO agreements affecting the livelihoods of millions in developing countries. The main area of concern in the film was the subsidy issue, basing its case studies around the small income groups in developing countries. Dr. Khosla, Chairman of Development Alternatives, while calling media an important agent in spreading the message, said that Trade Talking plays an important role in terms of forming a small part of the strategy that we need to formulate on bringing about change. He also suggested that while talking about the obvious subsidies we shouldn’t miss out on some incredibly large subsidies such as to transport, subsidies to energy alone amount close to 1.8 to 2 trillion dollars per year. “These are huge subsidies and promote completely unsustainable development and end up doing the opposite of what they intended to do. “ The General Agreement on Tariffs and Trade (GATT) was first signed in 1947. The agreement was designed to provide an international forum that encouraged free trade between member states by regulating and reducing tariffs on traded goods and by providing a common mechanism for resolving trade disputes and ensuring fair trade. While the talk on reducing tariffs has been at the heart of the WTO negotiations, regulation of the tariffs between member states has unfortunately been shoved aside. Dr. Vandana Shiva who featured in the film Trade Talking, congratulated the producers for bringing to the forefront the voices of the common man in developing countries. She also suggested that civil society should rush ahead and provide a framework for fair trade as the WTO talks have failed. `Fairer' trade is a starting point to lifting millions of poor out of poverty. Reduction in the gigantic subsidies being provided by the developed countries would disallow overproduction which in turn would stop export dumping. Jill Carr-Harris, working over land right issues for farmers, suggested that social distress and the plight of livelihoods in developing countries are elements for a media campaign that must be launched. It’s something that would add additional pressure to policy makers at the national and global level. Raising awareness about the WTO talks remains incomplete unless the official versions of WTO and the counter arguments are proposed – was the recommendation of Mr. Pradeep Sharma of CENTAD. Trade Talking was broadcast on Doordarshan and generated an animated discussion. Fair trade is not about giving subsidies to the "haves" but about providing a level playing field for the "have nots" q
The developed world funnels the equivalent of nearly $257bn a year through subsidies and import tariffs to its (mostly) wealthy landowners and agribusinesses- the last people who need propping up..... Farmers in poor countries find that they cannot compete with the exported, subsidised products, even with their abundance of cheap labour and land .....The result is that those farmers are put out of business.
A Round for
Free,
Oxfam Briefing Paper. June 2005 |
developed countries have faced trade barriers and wanted them lowered,
the negotiations have helped to liberalize trade. But on the other hand,
the issue of free trade that has come up through the subsidy - tariff
conflict still remains unresolved. Is WTO only about liberalizing trade,
or does the WTO rules also support maintaining trade barriers